Impact Comes to Market with Affordable Multifamily Housing Deal

Impact Community Capital priced an over $302 million affordable multifamily housing mortgage deal.

The sole bookrunner on the two-tranche, 144A offering iss Barclays Capital. The securitization is solely backed by affordable housing loans. The deal is expected to settle today.

The A-1 portion that priced at 225 basis points over interpolated swaps is worth $235 million while the A-2 tranche that priced at 230 basis points over interpolated swaps was worth $33.9 million.

Credit enhancement on the senior tranche is 22.2% and 11.0% on the junior portion. Tranche A-1 was broadly syndicated while the rest of the deal was retained by the issuer.

Further details on the transaction are available via the link below from the ASR Scorecards database.

The issuer, which is owned by a consortium of insurance companies, was formed to create socially responsible investing (SRI) by insurance firms in California's low-income communities.

According to its Web site, Impact is the first venture of its kind in the U.S. The issuer has attracted more than $1 billion in investment commitments to date. These commitments are targeted toward multifamily affordable housing, including workforce housing, and economic development, the firm’s Web site said.

It has, thus far, financed over 16,000 affordable housing units nationally, which include multifamily, senior and special needs units.

The company is committed to funding an additional 15,000 affordable units in the next two years.

It has also financed $36 million for childcare and healthcare facilities, and commercial centers in low-income communities in California, Impact’s Web site said.

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